Templeton Global Growth Fund Ltd rated “Recommended” by independent investment research


Templeton Global Growth Fund Ltd (ASX: TGG), a 31-year old Australian listed investment company (LIC) providing investors with access to world equity markets based on a value driven investment approach, has been awarded a “Recommended” rating by Independent Investment Research (IIR).

TGG’s investment objective is to achieve long-term capital growth for shareholders, particularly long-term investors and SMSFs. In its report, IIR states, “Over its history to 31 August 2018, the portfolio (pre-tax NTA before tax plus dividends) has generated an average rolling annual return of 8.8% compared to the benchmark index (MSCI ACWI, AUD) of 8.4%. The share price return has performed largely in line with the portfolio and the benchmark index return, with an average rolling annual return of 8.5% over the period.

“The company seeks to provide dividends that are not less than 3% of the NTA as at 30 June for the prior year and pay out franking credits where possible.”

The research house also noted: “Fees are low compared to peers, with a 1.0% management fee and no performance fee.

“The Manager [Franklin Templeton Investments Australia Ltd.] has a disciplined investment process [and] is supported by a well-resourced team with 38 Portfolio Managers and Analysts comprising the Templeton Global Equity Group.

IIR added, “while there are very few limitations, risk is managed through the company taking small positions in a diversified portfolio with positions typically not comprising of more than 3% of the portfolio at the time of investment.”

TGG Non-Executive Chairman, Chris Freeman, said: “As value style investors, we believe high growth and momentum stocks are most vulnerable in a climate of rising inflation and interest rates.  At TGG, we remain focused on our value investment philosophy and our strategy of improving investor confidence, through greater engagement with shareholders, improved communications to the market, and a share buy-back program. We are pleased to see that this strategy is paying off.”

Listed in 1987, TGG is one of the longest operating LICs on the ASX, not only in its peer group, but also across the whole Listed Managed Investments market.

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